In production order 40638 (as attached), we use another extra material of 1 kg. And after using extra material the system has done addition of both material price to the finish good material price instead of average price .
Due to this difference it goes into the WIP variance account .
We want to know why this happens ? And is there anything that we need to take care of in the future to avoid this ?
Please see attached screenshots for your easy reference.
Actual calculation should be done as => 235010.73 / 2038 = 115.31439
Currently the system is showing unit price as => 115.371 + 209.060 => 324.375 in Receipt of production instead of 115.314 due to which the variance is showing. Kindly advise